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NVR's chief accounting officer sells $1.19 million in stock

Published 28/10/2024, 19:58
NVR
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RESTON, Va.—Matthew B. Kelpy, Vice President and Chief Accounting Officer at NVR Inc . (NYSE:NVR), recently executed a series of stock transactions involving the company's common stock. On October 24, Kelpy sold 125 shares at an average price of $9,507.30 per share, totaling approximately $1.19 million.

In addition to the sale, Kelpy exercised stock options to acquire 125 shares at a price of $2,843.17 per share, amounting to a total value of $355,396. Following these transactions, Kelpy's direct ownership of NVR shares stands at 230 shares.

These transactions were disclosed in a filing with the Securities and Exchange Commission, providing a transparent view of Kelpy's recent activities in NVR's stock.

In other recent news, NVR Inc. reported third-quarter earnings per share (EPS) of $130.50, slightly below the average analyst estimate of $131.00, due to increased costs and a higher effective tax rate. Despite this, the company saw a 5% increase in home deliveries, leading to a 6% year-over-year rise in consolidated revenues, which totaled $2.73 billion, surpassing analyst estimates. BTIG, maintaining its Neutral rating on NVR, noted a significant new order increase of 19%, despite a year-over-year decline in community count by 2%. However, BTIG also emphasized NVR's challenge with a lack of community count growth.

JPMorgan, while maintaining a neutral stance, raised its price target for NVR to $9,820, following the company's third-quarter results. It noted a lower-than-expected gross margin and an increase in selling, general, and administrative expenses. Despite these challenges, NVR reported a 19% year-over-year increase in orders for the third quarter, outpacing JPMorgan's growth expectation of 13%.

These are recent developments for NVR Inc., a prominent U.S. homebuilder, which has been grappling with increased costs and the need to provide closing cost assistance. Despite these challenges, the company has managed to surpass analyst estimates in terms of consolidated revenues due to a healthy demand in the housing market.

InvestingPro Insights

Matthew B. Kelpy's recent stock transactions at NVR Inc. (NYSE:NVR) reflect the company's robust financial position and market performance. According to InvestingPro data, NVR's market capitalization stands at an impressive $28.41 billion, underscoring its significant presence in the homebuilding industry.

The company's strong financial health is evident from its P/E ratio of 17.83, which is relatively modest considering its performance. This valuation is particularly noteworthy given NVR's substantial revenue of $10.28 billion over the last twelve months as of Q3 2024, with a healthy revenue growth of 3.41% during the same period.

InvestingPro Tips reveal that NVR "holds more cash than debt on its balance sheet," indicating a solid financial foundation. This aligns with Kelpy's confidence in exercising stock options, as it suggests the company's ability to weather economic uncertainties.

Another relevant InvestingPro Tip highlights that "management has been aggressively buying back shares." This practice often signals management's belief in the company's value and future prospects, which may have influenced Kelpy's decision to maintain a significant stake in NVR even after his recent sale.

It's worth noting that NVR has demonstrated a "high return over the last year," with a remarkable 73.34% price total return over the past year. This performance likely contributes to the attractiveness of NVR's stock options for executives like Kelpy.

For investors seeking a deeper understanding of NVR's financial landscape, InvestingPro offers 13 additional tips, providing a comprehensive view of the company's strengths and potential areas of concern.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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